UAE’s EMSTEEL, one of the region’s largest publicly traded steel and building materials manufacturers, announced its financial results for the first nine months of 2024. The group reported revenues of AED 5.87 bln (USD 1.59 bln), a 9pct drop from AED 6.48 bln in the same period in 2023. Operating profit declined to AED 215.5 mln (USD 58.6 mln) from AED 456 mln last year.
The revenue dip stemmed from fluctuating global steel prices, heightened competition, and shifts in demand due to economic uncertainties in key markets. Profit margins were further pressured by an influx of low-priced Chinese steel exports impacting prices in EMSTEEL’s core markets, including the GCC, Europe, and the US.
Despite a three-week operational halt caused by extreme weather in April and May, EMSTEEL’s domestic market showed resilience. However, export challenges persisted with lower demand, pricing pressures, and rising freight costs, the company said.
The Emirates Steel division contributed AED 5.34 bln (USD 1.45 bln) in revenue, down from AED 5.81 bln in 2023, and recorded a pre-tax profit of AED 20 mln (USD 5.4 mln). Performance was impacted by tough global conditions and a one-time AED 83 mln (USD 22.5 mln) provision related to a legal claim. EMSTEEL maintained stable steel production volumes on YoY basis.
The Emirates Cement division earned AED 537 mln (USD 146 mln) in revenue, with a pre-tax profit of AED 81 mln (USD 22 mln).
Group CEO Eng. Saeed Ghumran Al Remeithi emphasized EMSTEEL’s resilience and adaptability in navigating market challenges, including declining steel demand, regional instability, and a surge in Chinese exports impacting international markets.
Headquartered in Abu Dhabi, EMSTEEL has a production capacity of 3.5 mln tons of steel and 4.6 mln tons of cement annually. The group exports to over 70 markets, accounting for 30pct of its sales. The company offers a diverse range of steel products, including wire rod, rebar, heavy sections, and sheet piles.
1 USD / 3.67 AED
